Texas HB138 limits penalties and interest on delinquent ad valorem taxes to five percent of the delinquent tax.

Texas HB138 amends the Tax Code to limit the total amount of penalties and interest a person is liable for on delinquent ad valorem taxes to five percent of the delinquent tax. The bill also mandates that tax collectors apply payments made by property owners to the amount of tax due before applying any portion of the payment to penalties or interest, unless the property owner provides written instructions for a different application. These changes apply to payments received on or after the effective date of the Act.

Texas HB138 limits penalties and interest on delinquent ad valorem taxes to five percent of the delinquent tax.

Texas HB138 amends the Tax Code to limit the total amount of penalties and interest a person is liable for on delinquent ad valorem taxes to five percent of the delinquent tax. The bill also mandates that tax collectors apply payments made by property owners to the amount of tax due before applying any portion of the payment to penalties or interest, unless the property owner provides written instructions for a different application. These changes apply to payments received on or after the effective date of the Act.